Inheritance and Gift Tax in Turkey (2026): Legal Framework, Tax Brackets, and Filing Obligations

Legal Nature and Scope of Turkish Inheritance and Gift Tax

Turkish inheritance and gift tax (veraset ve intikal vergisi) is a wealth transfer tax governed by Law No. 7338 on Inheritance and Gift Tax. The taxable event is either the opening of a succession (mirasın açılması) or the occurrence of a gratuitous transfer (ivazsız intikal) — such as a gift or donation made during the transferor's lifetime.

The scope of liability depends on the taxpayer's residence status:

• Unlimited tax liability: Heirs resident in Turkey are taxable on all inherited assets, regardless of whether those assets are located in Turkey or abroad.

• Limited tax liability: Heirs not resident in Turkey are taxable only on assets physically located in Turkey at the time of transfer.

This distinction is of particular significance for Turkish citizens residing abroad and foreign nationals who own assets in Turkey — both categories are subject to Turkish inheritance tax on their Turkish-sited assets, irrespective of their place of residence or nationality.

Taxable Base: Valuation Rules

The taxable base is the value of the transferred assets as determined under the Tax Procedure Law (Vergi Usul Kanunu), assessed at the date of transfer. The principal valuation rules are as follows:

• Real property: The higher of the declared value and the minimum value established by the relevant municipality. Where the declared value falls below the actual market value, the tax authority may reassess and issue an ex officio assessment (re'sen tarhiyat).

• Listed securities: Stock exchange value at the date of transfer.

• Unlisted company shares: Net asset value, calculated as total assets minus total liabilities.

• Bank accounts and cash: Account balance at the date of death.

• Vehicles: Insurance value or market value, whichever is higher.

Liabilities of the estate — including documented debts and funeral expenses — are deductible from the gross value of inherited assets in calculating the net taxable base.

2026 Tax Brackets and Exemption Threshold

Effective 1 January 2026, the brackets have been adjusted in accordance with the revaluation rate (yeniden değerleme oranı) determined under the Tax Procedure Law. Fractions not exceeding 5% of each bracket threshold are disregarded in the calculation.

The exemption threshold for 2026 is TRY 3,000,000 per heir. Inherited assets up to this value are not subject to tax. The following progressive rates apply to the amount exceeding the exemption:

Tax is computed on a cumulative progressive basis — each bracket is taxed at its own rate, applied only to the portion of the taxable base falling within that bracket. The substantially higher rates applicable to gratuitous transfers (gifts) compared to inheritance reflect the legislator's intent to distinguish between succession-driven and voluntary lifetime transfers, and have direct implications for estate planning decisions made prior to death.

Filing Obligations: Who Must File and When

Persons Required to File

Every heir or beneficiary who acquires ownership or rights of disposition over transferred assets is individually required to file a tax declaration. In multi-heir estates, each heir files a separate declaration reflecting their own share — a consolidated estate-level filing is not permissible under Turkish law.

Filing Deadlines

The applicable deadline varies depending on where the death occurred and where the heir is resident:

These deadlines are not preclusive (hak düşürücü) — they do not extinguish the underlying tax liability. However, late filing triggers default interest (gecikme faizi) and tax loss penalties (vergi ziyaı cezası), and as a practical matter, prevents completion of title deed transfers and other official transactions until the declaration is filed.

Competent Tax Office

The declaration must be filed with the tax office (vergi dairesi) having territorial jurisdiction, determined as follows:

• The deceased was a resident in Turkey → tax office of the deceased's last domicile

• Deceased was resident abroad, heir is resident in Turkey → tax office of the heir's domicile

• Both deceased and heir were resident abroad → Ankara Provincial Tax Directorate (Ankara Defterdarlığı)

Assessment, Payment, and Instalment Option

Tax assessed on the filed declaration is notified to the taxpayer by a formal notice. Payment may be made in six equal instalments spread over three years, with the instalment period commencing from the filing date. This instalment facility is available as of right and does not require a separate application.

Title deed transfers, vehicle registrations, and bank account transfers are subject to a mandatory notification requirement: the relevant registry authority (Land Registry, traffic authority, or bank) must be notified of the tax payment or instalment arrangement before the transaction can be completed. In practice, the Land Registry will refuse to process a title deed transfer (tapu devri) without confirmation that the inheritance tax obligation has been discharged or formally scheduled.

Special Considerations for Foreign Heirs

Interaction Between MÖHUK and Tax Law

Under MÖHUK Art. 20, the law applicable to succession is determined as follows: immovable property located in Turkey is governed by Turkish law; movable assets are governed by the national law of the deceased. This conflict-of-laws analysis governs the substantive succession — who inherits, in what shares, and under what conditions.

However, this analysis does not affect Turkish inheritance tax liability. Turkish inheritance tax follows the situs of the asset: any asset located in Turkey at the time of transfer is subject to Turkish inheritance tax, regardless of which national law governs the succession itself. The two regimes operate independently.

Filing by Non-Resident Foreign Heirs

A foreign national who has never resided in Turkey and inherits a Turkish real estate asset, bank account, or company share is nonetheless required to file a Turkish inheritance tax declaration. For heirs managing this process from abroad, the declaration is typically submitted through a duly authorised representative acting under a notarised and apostilled power of attorney (noter tasdikli ve aposti şerhli vekâletname).

Recognition of Foreign Succession Documents

Foreign certificates of inheritance, probate orders, or court judgments must be formally recognised under Turkish law before they can be relied upon in Turkish administrative or judicial proceedings. Depending on the nature of the document, this may require either a full recognition and enforcement (tanıma ve tenfiz) action before a Turkish civil court, or administrative registration under specific statutory provisions. Submitting a declaration to the tax authority without first ensuring that the succession document is valid and recognised in Turkey may result in the declaration being rejected or the process being suspended.

Frequently Asked Questions

Does the TRY 3,000,000 exemption apply per heir or per estate?

Per heir. Each heir's share is assessed individually against the exemption threshold. In an estate with multiple heirs, each heir benefits from a separate TRY 3,000,000 exemption against their own allocated share.

What are the consequences of failing to file?

Failure to file triggers an ex officio assessment by the tax authority based on its own investigation of the transferred assets. The assessment will include a tax loss penalty of up to 100% of the unpaid tax and default interest accruing from the original filing deadline. Additionally, all official transfer transactions remain blocked until the tax position is resolved.

Does renouncing the inheritance eliminate the tax liability?

Yes, provided the renunciation is made validly. Under Turkish Civil Code Art. 605, an heir who renounces the inheritance within three months of learning of the death — by formal declaration before the competent civil court of first instance — is deemed never to have been an heir. The renunciation retrospectively eliminates the tax liability. Conditional or partial renunciations are not recognised under Turkish law.

Can inheritance tax be offset against foreign taxes paid on the same transfer?

Turkey has not concluded bilateral tax treaties specifically covering inheritance and gift tax with most countries. In the absence of a specific treaty provision, there is no automatic credit mechanism under domestic Turkish law. This means that in cross-border estates, double taxation at the asset level is a genuine risk and should be assessed as part of the estate planning process.

Conclusion

The Turkish inheritance tax declaration process requires technically precise management of valuation, jurisdictional determination, and instalment mechanics. For foreign heirs and non-resident Turkish citizens, the process is further complicated by conflict-of-laws considerations, apostille and translation requirements, and the mandatory power of attorney framework for remote representation.

Who this guide is most relevant for

• Foreign nationals inheriting real estate, bank accounts, or company shares located in Turkey

• Turkish citizens resident abroad managing Turkish estate proceedings remotely

• Heirs in multi-jurisdictional estates where MÖHUK analysis and foreign document recognition are required

• Anyone assessing the tax implications of lifetime gifting versus testamentary transfer under Turkish law

At NISANCI Attorneys at Law, we advise foreign heirs and non-resident Turkish citizens on all aspects of Turkish inheritance proceedings — from tax declaration filing and asset valuation to title deed transfer and cross-border succession planning — in English, German, Russian, and Turkish.

Contact us for an initial consultation. All enquiries are treated in strict confidence.

This article reflects the inheritance and gift tax rates and exemption thresholds effective from 1 January 2026 under Law No. 7338, as adjusted by the applicable revaluation rate. It is prepared for general informational purposes only and does not constitute legal or tax advice.